The Victorian Farmers Federation is supporting Premier John Brumby in his bid to maintain the 4pc threshold limit on permanent trade out of districts within the Southern Murray-Darling Basin.
VFF president, Simon Ramsay, along with other stakeholders, met with mr Brumby yesterday to highlight farmers' concerns over unrestricted water trade.
"The proposed plan for an early review of the 4pc threshold limit on permanent trade out of districts within the MDB will have long term impacts on the viability of many Victorian rural towns and businesses," Mr Ramsay said.
"The 4pc cap is necessary to allow rural communities to adjust to the loss of economic activity that occurs when water is traded out of districts.
"While the VFF is sensitive to the needs of the environment the survival of rural communities must come first.
"Any early and unplanned review of this rule will not only exacerbate the stress in some areas but will also result in considerable loss of investments.
"The intent of this rule has always been to help rural communities to manage concerns about the adjustment of regions to water trade whilst also monitoring socio-economic impacts.
"The review of this rule should be carefully planned and informed through an integrated approach that considers three major components; the Commonwealth’s purchase of entitlements, investment in infrastructure upgrades, and the new diversion limits resulting from the Basin Plan due in 2011."